Astral Ltd has soared over 14% in just 7 days! What's in for the traders?

ASTRAL jumped over 4% on August 04.

The stock of Astral Limited has seen strong buying interest as it soars over 4% during Thursday’s trading session. Interestingly, the stock has jumped about 14% in just 7 trading sessions, thus indicating a strong upmove. Recently, the stock formed a rounding base near 1600-1650 levels and has jumped about 25% from its prior swing low of Rs 1581 level. The volumes have been higher, indicating a good buying interest in the stock. Also, the stock has crossed above its 61.8% retracement level of its prior downtrend. With this, it is above its 20-DMA, 50-DMA and 100-DMA indicators.

Along with its bullish price structure, the technical parameters indicate strong strength in the stock. The 14-period daily RSI (76.86) is in the super bullish territory and shows tremendous strength. The ADX (27.05) is in a continuous uptrend and shows good trend strength. Also, the OBV is improving as the volumes have risen. The MACD shows a positive trend, while the TSI and KST indicators also indicate a bullish momentum. The Relative Strength (RS) is in bullish zone. Also, the Elder Impulse has charted the bullish bars and demonstrates buying emerging in the stock. Thus, the above points pretty much sum up the stock being technically strong.

As per the technical analysis, the stock is expected to test the 200_DMA level of Rs 2011 in the near term, followed by Rs 2100 in medium term. The company is expected to post its quarterly earnings next week. It is expected to report robust numbers and good growth, while the management commentary will be keenly watched. Meanwhile, the stock provides a good trading opportunity for the traders. One can expect decent gains in the short to medium term. Include it in the watchlist to track its further performance.

Astral Limited works in the business of production of plastic products. It includes the manufacturing and trading of pipes, fittings, and adhesive solutions for residential and industrial buildings.